SAVANNAH, GA (WTOC) - A Savannah man pleaded guilty Tuesday in federal court to a massive loan fraud scheme against the First National Bank of Savannah.
Alan Robert Fleming, 37, was the last of seven former officers who pleaded guilty on Jan. 21 to two charges of bank fraud, according to the U.S. Attorney's Office for the Southern District of Georgia. They were indicted in January 2013.
First National Bank failed and was taken over by the FDIC on June 25, 2010. The bank failure cost the Deposit Insurance Fund more than $90 million.
Heys Edward McMath III, 59, the former president and CEO of First National Bank, pleaded guilty on Nov. 12, 2013, to conspiring to defraud First National Bank and other federally-insured banks.
Stephen Michael Little, 65, the former executive vice president and CFO of First National Bank, pleaded guilty on Jan. 15 to two counts of bank fraud.
Robert Wilson Dailey, 52, the former city president and senior lending officer of First National Bank, plead guilty on Jan. 17 to two counts of bank fraud.
Jay Patrick Gardner, 63, the former vice president of credit administration of First National Bank, pleaded guilty on Oct. 25, 2013, to one count of bank fraud.
Isaac Jefferson Mulling, 53, a former senior vice president and commercial loan officer of First National Bank, pleaded guilty on Jan. 16 to two counts of bank fraud.
Jeffrey Allen Farrell, 45, the former city president of the Richmond Hill branch and a commercial loan officer of First National Bank, pleaded guilty on Jan. 15 to one count of false entries made in bank records.
The seven bank officers worked to hide from to hide from the bank, members of the bank's board of directors, and from federal regulators millions of dollars in non-performing loans, as the bank's financial condition worsened, according to the U.S. Attorney's Office.
United States Attorney Edward J. Tarver said in a statement: "These Defendants chose to hand out millions of dollars in fraudulent loans and to falsify numerous bank records, all in an effort to gamble with other people's money and to hide the true condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of losses by the Federal Deposit Insurance Corporation. As the nation continues to recover from a banking crisis of epic proportions, citizens should know this: no matter the complexity of the scheme, bank officers who place FDIC-funds at risk through fraud and other criminal conduct will be brought to justice."
Money was unlawfully loaned to unqualified nominees to make interest and other payments on other non-performing loans.
They will be sentenced after the United States Probation Office completes their presentence investigations. All of the Defendants remain on bond pending sentencing.